Gold prices fell on Friday, bringing the most active gold futures contracts to their lowest close in more than a week as the dollar strengthened against other major currencies.
Traders’ attention has shifted to the meeting of the Federal Reserve System, which is scheduled for June 15-16.
While data released by the Labor Department on Thursday showed US consumer prices rose 5% more than expected in May, analysts believe rising price pressures will be temporary and the Fed will not give up monetary support anytime soon.
The dollar index rose to 90.61, adding about 0.6%. The index fell to a low of 89.96 in the Asian session, but climbed during the day.
August gold futures were down $ 16.80, or about 0.9%, to $ 1,879.60 an ounce, their lowest close since June 3.
Silver futures for July closed up $ 0.115 to hit $ 28.146 an ounce, while July copper futures closed at $ 4.5375 a pound, $ 0.0525 down from the previous close.
Preliminary data released today by the University of Michigan showed a stronger-than-expected recovery in US consumer sentiment in June.
The report said the consumer sentiment index rose to 86.4 in June after falling to 82.9 in May. Economists had expected the index to rise to 84.0.
The consumer expectations index jumped to 83.8 in June from 78.8 in May, while the index of current economic conditions rose to 90.6 from 89.4.
The material is provided by InstaForex – www.instaforex.com.